Single-payer bills a ‘job killer’ + Spirits shipping bill + Cannabis tax rally planned
Good morning and welcome to the A.M. Alert!
CALCHAMBER DUBS SINGLE-PAYER BILLS A ‘JOB KILLER’
Less than two weeks into the new year, the California Chamber of Commerce has named its first two “job killer” bills: AB 1400 and ACA 11, which if passed would implement single-payer health care in the Golden State.
“Single payer health care is not free health care,” said CalChamber Policy Advocate Preston Young in a statement. “AB 1400 and ACA 11 would not only ruin quality health care delivery in the state but create the largest tax increase in state history. Successfully standing up a new function that would be twice the size of the existing state budget is highly doubtful, given the state’s recent experience with benefit delays and massive fraud in the unemployment system.”
CalChamber sent a letter to the bills’ authors stating that if ACA 11 were to be enacted, funding the health care system, California’s top personal income tax rate for individuals and sole proprietors would increase by 2.5%.
“Certainly, the kinds of tax increases necessary to finance AB 1400 would detrimentally impact California businesses and discourage companies from growing or relocating here,” Young said. “It would likely lead to significant layoffs or relocations as existing businesses and employers would be forced to cut costs to sustain the added new tax burden.”
CalChamber notes that 94% of Californians have some form of health care coverage, with a majority of those who are uninsured being undocumented individuals.
“Governor Gavin Newsom’s budget proposal addresses this very issue and would make California the first state to offer health care coverage for all income-eligible residents regardless of immigration status,” CalChamber said in a statement.
And Newsom at an event in Kern County Tuesday defended his record on expanding access to health care without endorsing the single-payer bills in the Assembly. He spoke to highlight a provision in his budget proposal that makes all low-income Californians eligible for Medi-Cal, regardless of their immigration status.
“I campaigned on universal health care. We’re delivering that,” he said.
Hours later, the Assembly Health Committee and advanced Assemblyman Ash Kalra’s AB 1400 on an 11-3 vote.
BILL ALLOWING DTC SHIPPING OF SPIRITS PASSES COMMITTEE
Raise a glass of your preferred spirit — a bill making direct-to-consumer shipping permanent for spirit manufacturers passed out of the Senate Governmental Organization Committee on Tuesday.
SB 620 advances onward to the Senate Appropriations Committee.
“As both a winemaker and distiller, the unequal treatment of wine and spirits products is even more clear to me,” Alex Villicana, owner of Re:Find Distillery and Villicana Winery, and member of the California Artisanal Distillers Guild, said in a statement. “Being able to ship one of my products but not the other makes no sense. Wine DTC shipping allowed that sector to grow drastically. Jobs skyrocketed for vintners, wholesalers and retailers. We simply want the same ability to safely ship our great spirits products to consumers — growing our sector and our brand, all while reaching our customers where they are.”
Distilleries have been able to ship their products to customers on a temporary basis since the state Department of Alcoholic Beverage Control issued a waiver in March 2020, in light of the COVID-19 pandemic. That waiver has since been extended to March 31, 2022.
“Direct-to-consumer spirits shipping helped save many California businesses and jobs during the pandemic,” Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, said in a statement. “Stripping distillers of a responsible and critical revenue stream, and consumers of increased convenience, simply doesn’t make sense in the modern marketplace.”
CANNABIS TAX REFORM RALLY SET FOR CAPITOL THIS THURSDAY
A coalition of advocates and activists are gathering on the Capitol steps on Thursday to call for the repeal of the state’s cannabis excise tax for equity retailers and the cannabis cultivation tax for all growers across the state.
The gathering comes on the heels of Gov. Newsom’s announcement that he supports reforming the state’s cannabis tax structure in his 2022-23 proposed budget released Monday.
“For 40+ years, Black and Brown people, as well as Emerald Triangle legacy farmers, were locked up and denied freedoms for the same activity that is enriching the purse strings of many cannabis corporations today,” said activist and co-organizer Amber E. Senter of the nonprofit Supernova Women in a statement. “Not only has the State fallen short on its promise to right the wrongs inflicted upon minority communities by the War on Drugs, but it has also perpetuated regressive War on Drugs 2.0 policies through oppressive taxation, which has to end.”
Supernova Women is partnering with fellow nonprofit the Origins Council to hold a rally, which is expected to draw dozens of cannabis operators to the Capitol steps on Thursday.
“Our legacy cannabis farmers are pioneers who deserve to be protected and exalted,” said Genine Coleman, executive director of the Origins Council, in a statement. “Thousands of small family-owned licensed cannabis farms across rural California are faced with a catastrophic collapse of the wholesale market, no pathway for direct to consumer sales, and in some cases tens of thousands of dollars in outstanding environmental compliance costs.”
Among those attending and speaking at Thursday’s rally is Assemblywoman Mia Bonta, D-Alameda, and Sen. Steve Bradford, D-Gardena.
The rally begins at 11 a.m. on the west Capitol steps. You can stream it on Facebook or Instagram.
QUOTE OF THE DAY
“Totally disingenuous. He has no respect for the Legislature including members of his own party. He promised to do exactly this when he ran for Governor but now is not so subtly distancing himself. Media shouldn’t let him get away with it.”
- Assemblyman James Gallagher, R-Yuba City, speaking about Gov. Gavin Newsom’s comment that he has not read AB 1400 via Twitter.
Best of the Bee:
Remember COVID-19 phone alerts? California app ignores at-home tests, missing exposures, via Jason Pohl
Gov. Gavin Newsom Monday proposed suspending the gasoline and diesel fuel tax inflation-related increases expected in July – a plan that could save motorists money at a time when prices are rising at their steepest level in nearly 40 years, via David Lightman.
Facing a possible industry revolt over California cannabis tax structure, Gov. Gavin Newsom on Monday signaled that he is open to rethinking the taxes the state levels on marijuana growers and purchases, via Andrew Sheeler.
California will whittle down its long-term debt in the fiscal year ahead with a supplemental pension payment of $3.5 billion, according to Gov. Gavin Newsom’s budget proposal, via Wes Venteicher.